Thisstudy examinesthe relationship between poverty1 and deforestation2 around the gazetted forests3 of Kazimzumbwi, Pugu, Mabwe Pande, Kongowe and Pongwe in Dar es Salaam and Coast regions. It examines pressure exerted on the reserved forests by the nearby population and economic forces in the surrounding towns. The research findings show that, there is a profound and vicious-cycle between poverty and deforestation in the studied areas. Low-income people dominate the studied areas, where there is low investment in human capital (the majority of the people did not complete even the primary school education). As a result, there is low productivity in economic activities. Agriculture, for example is done using poor methods such as slashing, burning, and shifting cultivation. Many people in the surveyed areas have limited alternative, hence tend to rely on easily accessible forest resources to earn a living. Incomes from forest related activities seem to be stable and double the household income. Such a situation accelerates deforestation, which subsequently reduces resources available to the society. Further, findings show that although legally reserved, the forests have been exposed to continuous pressure for competing economic uses. As access to the reserved forests, management of the forests becomes extremely important. Despite the fact that the majority of the people have some knowledge about the effects of deforestation, the knowledge seems to be insufficient, and is uncoordinated and effected. It is observed in the report, that off-farm activities in the studied areas have been rising. Returns from these activities do complemente those from farm activities.